In July trade deficit widens 44pc
As Pakistan trade deficit widened 44 percent in July due to a sharp rise in imports, Planning Minister Ahsan Iqbal on Tuesday expressed hope that it would be a “temporary dip,” likely to be offset by an increase in exports driven by higher imports of raw materials.
While launching the first monthly development report for the fiscal year 2025-26, the minister said the benefit of the lowest US tariffs on Pakistan in the region would depend on exporters’ ability to seize the opportunity by penetrating foreign markets.
The 44 percent higher trade deficit in July “is a temporary dip and will be offset by the increase in exports” in coming months, Iqbal said, when asked if the sudden jump was linked to the government’s policy of opening the economy for foreign competition.
Auto sales plunge 49pc post-budget
Pakistan’s automobile industry experienced a sharp slowdown in July 2025, with sales tumbling 49 percent month-on-month (MoM) to 11,034 units, according to data from the Pakistan Automotive Manufacturers Association (PAMA). Despite the steep monthly decline, volumes were up 28 percent year-on-year (YoY) due to a low base in July 2024.
Industry experts attribute the MoM slump primarily to the high base of June 2025, when a rush of pre-buying occurred ahead of tax hikes in the FY26 federal budget. The budget introduced an Electric Vehicle (EV) adoption levy and raised the sales tax on 850cc vehicles from 12.5 percent to 18 percent, prompting customers to advance purchases before the changes took effect.
NTC seeks zero duty
The National Tariff Commission (NTC) has proposed that the duty on basic raw material for iron and steel may be reduced to zero to ensure an uninterrupted supply of inputs and a lower production cost.
The commission has proposed tariffs ranging from 11 percent to 20 percent on finished products like re-bars, wire rods and alloy bars. It has also recommended 2-6 percent additional customs duty and 10-30 percent regulatory duty, adding that these should be rationalised by removing the additional duty and reducing the regulatory duty to 10 percent over the next three years. In its report submitted to the Economic Coordination Committee (ECC), the NTC pointed out that high tariff protection for billets and bars, coupled with high energy and financial costs and economic slowdown, had increased steel prices, affecting construction, manufacturing and infrastructure projects.
Sesame project targets
On August 11, a delegation from the Silk Road Biohealth Agriculture Industry Alliance of Northwest A&F University (NWAFU) visited the Biohealth Sesame Order Demonstration Farm in Sahiwal, Punjab. The farm operates under the China-Pakistan Biohealth Agriculture (BHA) Overseas Technology Demonstration Park. Built jointly by China Machinery Engineering Corporation (CMEC), NWAFU, and Pakistan’s Ayub Agricultural Research Institute, the project introduced high-quality Chinese sesame varieties and advanced production technologies.
Pak-China conference to target $1.2bn
The 2nd Pakistan-China Business Conference will be held in Beijing on September 4, coinciding with Prime Minister Shehbaz Sharif’s visit for the Shanghai Cooperation Organisation (SCO) Summit in Tianjin.
Pakistan’s Ambassador to China, Khalil Hashmi, said the conference aims to expand trade and investment ties. Organised by the Pakistan Embassy in Beijing with the Special Investment Facilitation Council (SIFC), Board of Investment, ministries, and provincial departments, preparations include answering Chinese investors’ queries and showcasing opportunities.
“We are finalising the list of companies and scheduling matchmaking sessions in advance for better outcomes,” Hashmi said. Chinese firms will be briefed on incentives such as land acquisition, tax breaks, duty exemptions, wage structures, and energy supply.
Penalties on rice exporters
A delegation of the Rice Exporters Association of Pakistan (REAP), led by Senior Vice Chairman Jawed Jillani, met with State Bank of Pakistan (SBP) Governor Jameel Ahmad and his team at the central bank.
Jawed Jillani informed the SBP governor about the challenges being faced by rice exporters. He requested him to waive the penalties imposed in the wake of late realisation of export proceeds, which was mainly due to the extra delay in transit time and was beyond the control of exporters. In response, the SBP governor issued instructions to remove the penalties.
The delegation complained about the unavailability of Export Refinance Facility (ERF) from various banks and the additional foreign exchange rates charged by shipping companies, which were Rs10-12 higher than the inter-bank rates.
Sindh unveils sepra plan
Sindh Minister for Energy, Planning and Development Syed Nasir Hussain Shah has said affordable electricity for businesses and the public is the vision of President Asif Ali Zardari and Chairman Bilawal Bhutto Zardari, backed by Chief Minister Murad Ali Shah.
Speaking at the “Multi-Stakeholders Conference on Competitive Electric Market in Pakistan,” he said the Sindh Transmission and Dispatch Company (STDC) and the Sindh Electric Power Regulatory Authority (SEPRA) will ensure cheaper electricity than K-Electric (KE).
OICCI proposes additional climate finance, business role
The Overseas Investors Chamber of Commerce and Industry (OICCI) has underscored the urgency of mobilising climate finance at scale as the private sector is positioned to act as a central partner in building resilience.
The assertion came at the launch of OICCI’s 3rd Pakistan Climate Conference Report titled “Creating an Enabling Environment for Private Sector Participation in Climate Resilience.”
Ranked first on the Climate Risk Index 2025 despite contributing less than 0.9 percent to the global greenhouse gas emissions, Pakistan is bearing disproportionate losses. In 2022 alone, climate-induced disasters inflicted over $30 billion in damages, with recovery needs exceeding $16.3 billion.